Delta Electronics Inc (台達電) yesterday gave a flat outlook for this quarter as it reported a 15.77 percent year-on-year decline in net profit of NT$5.13 billion (US$168.41 million) for the third quarter, resulting in earnings per share of NT$1.97.
The Taipei-based company blamed the decline on its automation segment’s poor performance, which saw operating profit plunge 20 percent year-on-year, and a bumpy takeover of Delta Electronics (Thailand) PCL (泰達電), in which it acquired a 63.78 percent stake in April.
The company’s automation business, which contributed 13 percent to overall revenue last quarter, has hit rock bottom, chairman Yancey Hai (海英俊) said.
“Our industrial automation business depends largely on the China market, as it brings in around half of [the business’] revenue ... however, there are a lot of market uncertainties due to US tariffs,” Hai told investors at an earnings conference in Taipei.
The company is investing heavily in research and development (R&D) in a bid to stay ahead of the competition, Hai said.
Delta put about 8.8 percent of its overall revenue toward R&D last quarter, a 25 percent increase year-on-year, it said.
Third-quarter revenue rose 13.9 percent year-on-year to NT$72.46 billion thanks to strong sales from the power supply segment, which contributed 53 percent to overall sales last quarter and a 23 percent increase in operating profits on an annual basis.
Order visibility for its passive components segment this quarter is good, the company said.
“We are seeing more and more passive components in mobile phones and automobiles ... we can count [on average] more than a dozen in a car,” Hai said.
There was a slight growth in shipments of fans and thermal products this quarter, he said.
However, the company’s infrastructure segment, which contributed 34 percent to overall revenue, is expected to see a decline, with Hai saying he was conservative about its telecom equipment segment.
“The transition from 4G to 5G is proving to be quite complicated,” he said, indicating that telecommunications enterprise clients have struggled to find a balance between a profitable business model and the high initial investment required for 5G deployment.
Sales of electric vehicle components are likely to remain flat this quarter as the market has yet to take off, Hai said.
“Electric vehicles are still too expensive ... there is not yet a complete market infrastructure to secure demand,” Hai said, adding that environmental regulations remain the most important driver in the sector.
Taiwan Semiconductor Manufacturing Co (TSMC, 台積電) last week recorded an increase in the number of shareholders to the highest in almost eight months, despite its share price falling 3.38 percent from the previous week, Taiwan Stock Exchange data released on Saturday showed. As of Friday, TSMC had 1.88 million shareholders, the most since the week of April 25 and an increase of 31,870 from the previous week, the data showed. The number of shareholders jumped despite a drop of NT$50 (US$1.59), or 3.38 percent, in TSMC’s share price from a week earlier to NT$1,430, as investors took profits from their earlier gains
In a high-security Shenzhen laboratory, Chinese scientists have built what Washington has spent years trying to prevent: a prototype of a machine capable of producing the cutting-edge semiconductor chips that power artificial intelligence (AI), smartphones and weapons central to Western military dominance, Reuters has learned. Completed early this year and undergoing testing, the prototype fills nearly an entire factory floor. It was built by a team of former engineers from Dutch semiconductor giant ASML who reverse-engineered the company’s extreme ultraviolet lithography (EUV) machines, according to two people with knowledge of the project. EUV machines sit at the heart of a technological Cold
Taiwan’s long-term economic competitiveness will hinge not only on national champions like Taiwan Semiconductor Manufacturing Co. (TSMC, 台積電) but also on the widespread adoption of artificial intelligence (AI) and other emerging technologies, a US-based scholar has said. At a lecture in Taipei on Tuesday, Jeffrey Ding, assistant professor of political science at the George Washington University and author of "Technology and the Rise of Great Powers," argued that historical experience shows that general-purpose technologies (GPTs) — such as electricity, computers and now AI — shape long-term economic advantages through their diffusion across the broader economy. "What really matters is not who pioneers
TAIWAN VALUE CHAIN: Foxtron is to fully own Luxgen following the transaction and it plans to launch a new electric model, the Foxtron Bria, in Taiwan next year Yulon Motor Co (裕隆汽車) yesterday said that its board of directors approved the disposal of its electric vehicle (EV) unit, Luxgen Motor Co (納智捷汽車), to Foxtron Vehicle Technologies Co (鴻華先進) for NT$787.6 million (US$24.98 million). Foxtron, a half-half joint venture between Yulon affiliate Hua-Chuang Automobile Information Technical Center Co (華創車電) and Hon Hai Precision Industry Co (鴻海精密), expects to wrap up the deal in the first quarter of next year. Foxtron would fully own Luxgen following the transaction, including five car distributing companies, outlets and all employees. The deal is subject to the approval of the Fair Trade Commission, Foxtron said. “Foxtron will be
RSS